RWA's Impact on Blockchain and Traditional Finance

According to Odaily, a research report by Zheshang Securities highlights the macroeconomic impact of Real World Assets (RWA) on blockchain technology. The report suggests that RWAs are contributing to the creation of a 'global capital market' on the blockchain, potentially accelerating the replacement of traditional finance with on-chain financial systems. This shift may lead to a temporary expansion of U.S. dollar credit. RWAs, stablecoins, and decentralized finance (DeFi) smart contracts are mirroring traditional financial systems on the blockchain by replicating investment targets, fiat currencies, and financial intermediary functions. These elements are working together to form a new financial ecosystem on the blockchain. In the long term, the mechanism of integrating RWAs onto the blockchain poses a potential challenge to traditional financial institutions, including banks, brokerage firms, insurance companies, and exchanges.